Meesho's financial results for the second quarter of fiscal year 2027 show significant progress, with the company narrowing its net loss to ₹132 crore year-on-year and achieving a 23% growth in net merchandise value (NMV). This growth reflects Meesho's expanding consumer base and improved operational efficiency.
- Net merchandise value (NMV) grew 23% year-on-year to ₹12,911 crore.
- Revenue from operations increased 34% to ₹4,132 crore.
- Contribution margin expanded to 6.0% of NMV, up from 4.6% in the previous quarter.
- Annual transacting users rose 21% to 284 million.
- First-time buyers increased 16% quarter-on-quarter.
- Quarterly free cash flow improved to ₹345 crore from an outflow of ₹226 crore.
- Cash balance stood at ₹7,048 crore as of September 30, 2026.
How did Meesho perform financially in Q2 FY27?
Meesho's revenue from operations for Q2 FY27 reached ₹4,132 crore, marking a 34% increase compared to ₹3,074 crore in the same quarter last year. The company reduced its earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss to ₹229 crore from ₹456 crore year-on-year. This improvement indicates better cost management and operational efficiency.
What growth did Meesho see in its user base and transactions?
The number of annual transacting users grew by 21% to 284 million, showing a larger customer base engaging with the platform. Additionally, annual purchase frequency increased by 7% to 10.4 transactions per user, indicating more frequent buying behavior. First-time buyers rose by 16% quarter-on-quarter, demonstrating successful efforts to attract new customers.
What contributed to the increase in Meesho's contribution margin?
Meesho's contribution margin expanded to 6.0% of NMV in Q2 FY27, up from 4.6% in the previous quarter. This improvement was supported by logistics efficiencies and enhanced platform monetisation, including stronger advertising revenue and better alignment of seller offerings with consumer demand.
How did Meesho perform during the festive season?
The net merchandise value during the 90 days leading up to Dussehra grew 33% year-on-year on a festive-aligned basis. This growth reflects strong consumer demand during comparable festive periods, despite the Mega Blockbuster Sale shifting from Q2 last year to Q3 this year. The increase highlights Meesho's ability to capitalize on seasonal shopping trends.
What is Meesho's financial position as of September 30, 2026?
Meesho held a cash balance of ₹7,048 crore, providing the company with flexibility to pursue long-term growth opportunities while maintaining financial discipline. The company also generated ₹345 crore in free cash flow during the quarter, a significant improvement from the previous quarter's outflow of ₹226 crore, supported by seasonal working capital benefits.
How is Meesho using technology to improve its platform?
Meesho is leveraging artificial intelligence (AI) to enhance its platform operations. Engineering productivity increased by 171% between March and September 2026, reflecting the company's focus on innovation and efficiency. This technological advancement supports Meesho's growth and improved platform economics.
What is the market response to Meesho's Q2 FY27 results?
Following the earnings announcement, Meesho's shares closed at ₹226.84 on the National Stock Exchange, rising by 1.91%. As of October 28, 2026, the company's market capitalisation stood at ₹1.05 lakh crore, indicating strong investor confidence in Meesho's growth prospects.
"More consumers are shopping on Meesho, and they are shopping more frequently, even as first-time buyers grew 16% quarter-on-quarter. This momentum extended into the festive season, with NMV growing 33% year-on-year on a festive-aligned basis, reinforcing our conviction in the depth of India’s e-commerce opportunity," said Vidit Aatrey, Chairman, Managing Director and CEO at Meesho.
